Bank deposits grew a sluggish 12.73 per cent on year-on-year basis till February 22, while loans rose 16.25 per cent during the same period, latest data from the Reserve Bank of India (RBI) showed.During the fortnight, the banks disbursed new credit of about Rs 26,000 crore, while they lost deposits of about Rs 10,000 crore. The central bank has projected 16 per cent credit growth and 15 per cent deposit growth for this financial year.Falling deposit growth has forced banks to raise the deposit rates to attract depositors, who are otherwise investing in gold and real estate, seeking better returns.

Source - http://www.business-standard.com